Part One, Chapters VII–VIII

Summary—Chapter VII: The Exploiters and the Exploited

The reconstruction of the Rio Norte Line is plagued with
problems, but Dagny and Rearden manage to keep the project on schedule through
quick and decisive actions. Ellis Wyatt appears at the Rio Norte
construction site, where he has been helping out behind the scenes.
His appreciative tone with Dagny acknowledges that she is as driven
and focused as he is. Dagny is relieved to also find Rearden at
the site. He proposes replacing an old bridge in Colorado with one
made entirely of Rearden Metal. Dagny approves his bold plan.

Back in New York, Dagny orders a cup of coffee
at a diner. A man sitting next to her complains that there is no
human spirit, that men are concerned only with satisfying their
bodies’ needs. Another man shrugs off the importance of morality.
“Who is John Galt?” he says with a sneer. At this, a small, shriveled
tramp declares that he knows. John Galt was a great explorer who found
the fountain of youth.

Dr. Potter, from the State Science Institute, comes to
see Rearden and tells him that society is not ready for Rearden
Metal. He says that Rearden’s company might harm his competitors
by producing too much and asks Rearden to wait a few years before
producing his metal. When Rearden refuses, Potter offers to buy
all rights to his metal, at any price. Rearden refuses. Potter tells
him that there are certain bills pending in the legislature that
make businessmen particularly vulnerable. The threat is clear. Later,
the State Science Institute issues a formal warning about Rearden
Metal. The statement lacks any scientific basis but hints at possible
dangers. In response to the denunciation, Taggart stock crashes;
Ben Nealy, the Taggart contractor, quits; the Brotherhood of Road
and Track Workers forbids its members to work with the metal; and
Jim leaves town.

Visiting the State Science Institute in New
Hampshire, Dagny finds that Dr. Stadler, at one time the greatest
scientist in the country, is completely disillusioned. He agrees
that the metal is a great discovery but says the Institute will
not support it. Despite spending millions, the Institute’s metallurgists
have failed to discover anything as valuable, and they are afraid
to draw attention to the fact that a private citizen succeeded where
a government-funded institution failed.

When Dagny finds Jim, he is desperate. He wants to save
the railroad but has no idea what to do. Dagny tells him she will
finish the line on her own. Because everyone is afraid of Rearden
Metal, she will resign and start her own company. After she proves
that the metal works, she will return to Taggart and bring her line
with her. She will name her company the John Galt Line. Dagny goes
to Francisco d’Anconia for money, but he refuses to help and expresses shock
at her name for the line. Dagny finds the investors she needs among
the industrialists of Colorado. Rearden also invests.

The Legislature passes the Equalization of Opportunity
Bill, which will force Rearden to give up his mines. Wesley Mouch
had not informed Rearden that the bill was being considered, and
he cannot be reached by phone.